Target’s Mysterious Price Changes

This 5 minute news video covers some very interesting pricing strategies employed by Target.  Using location awareness, Target will change prices within their app making products more expensive when you walk into the store.  The video includes an interview with a University of Minnesota marketing professor who provides his hypothesis for why Target might be using this variable pricing model.

Beyond showing a more sophisticated pricing strategy, this is an opportunity for an ethical discussion with students as well.  Is it okay for Target to behave in this manner?  When you load the Target app it asks if it can track your location so it can keep track of your favorite store and help you navigate the store.  Should they have to disclose that they may change product prices based on your location as well?  If they did so, would that make it okay?